Last day for Jaypee Infratech home buyers to file claims; Here's a checklist

NCLT bench has asked home buyers of Jaypee Infratech to file for refund claims by August 24, 2017. However, home buyers have knocked the doors of Supreme Court seeking stay on NCLT order.

Key Highlights:

Homebuyers of Jaypee Infratech to file claims by August 24, 2017

SC to hear PIL filed by Jaypee's homebuyers

A total of 32,000 homebuyers ask for stay on NCLT order on August 09

The Supreme Court (SC) has agreed to hear a Public Interest Litigation (PIL) filed by home buyers of Jaypee Infratech. They are seeking a relief from the Sc against the order passed by the National Company Law Tribunal (NCLT) on August 09, 2017.

Nearly 32,000 people are affected by the NCLT order as they worry their savings given to the builder for their homes will go waste if NCLT declares the company insolvent and begins proceedings.

According to a Livemint report, the matter was brought by Chitra Sharma, a Delhi-based resident, before a bench headed by Chief Justice J.S. Khehar who agreed for hearing on August 24,2017.

On August 09, the Allahabad bench of the National Company Law Tribunal (NCLT) admitted plea of IDBI Bank to begin insolvency proceedings against Jaypee Infratech for defaulting on a loan of Rs 526.11 crore. The bench also appointed Anuj Jain as the Interim Resolution Professional (IRP) to carry out the proceedings under the Insolvency and Bankruptcy Code.

Jain has been given six-months time period to submit a plan for revival of Jaypee Infratech's. The plan for resolution of the company will be submitted before NCLT for approval.

If Jain's resolution plan for Jaypee Infratech does not get NCLT nod, then the projects and assets of the company will be sold and money recovered out of it will be distributed among creditors including home buyers.

NCLT has asked home buyers who have purchased flats from Jaypee Infratech to file for their claims by August 24, 2017 for refund of their money in case revival of the company fails.

If you are an Jaypee Infratech home buyer, here's what you need to know:

Flat buyers who are involved in the following Jaypee Infratech porjects are only eligible to submit their claim to the IRP pursuant to the public announcement.

There are four forms available to file for claim on Jaypee Infratech's website.

They are - Form B (For Operational Creditors), Form C (For Financial Creditors), Form D (For Workmen & Employees) and Form F (For Creditors other than Financial Creditors and Operational Creditors).

It is mandatory for home buyers to submit forms B and C issued by the IRP which pertain to financial creditors.

Form B, Form C and Form F require information like name of operational creditor or financial creditor, identification number, address & email-id, total amount of claim and bank account details.

Form D needs information like name of the workman/employee, PAN number, passport information or Aadhaar number, address & email-id, total amount of claim along with details of bank account.

As per the advise dated 22nd August 2017 issued by the Insolvency and Bankruptcy Board of India to the IRP, “the claims of home buyers may be obtained from the records of the debtor and verified by/from the home buyers either individually or collectively”.

Therefore, if a home buyer is unable to submit his/her claim in the prescribed format by the due date of 24th August 2017, the IRP will consider his/her claim on the basis of the Company’s record (SOA) and books of account and decide after its verification in accordance with the IBC.

Jaypee Infratech is among the 12 defaulters identified by the Reserve Bank of India (RBI) on June 13, 2017 for Insolvency & Bankruptcy code (IBC).